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Run a simple linear regression using EXCEL ( 11 Marks) Use Time period and Stock 2 prices Show the output from Excel ( note the
- Run a simple linear regression using EXCEL (11 Marks)
- Use Time periodand Stock 2 pricesShow the output from Excel ( note the weeks must be changed to time periods 1,2,3...)
- Set up the linear regression equation Stock 2
- Test the significance using p-value with =0.05. Stock 2
- Use Linear regression equation (from b) forecast the stock price for end of May 2022. Stock 2
- Draw Time-series plot for Stock 2
- Do you notice any trend in e)? How would you adjust your forecast above in d)?
Date STOCK 2 WEEKLY RATE OF RETURN DEVIDATION OF STANDARD RATE OF RETURN 1/01/2021 0.585 8/01/2021 0.555 -5.128205128 15/01/2021 0.565 1.801801802 22/01/2021 0.745 31.85840708 29/01/2021 0.665 -10.73825503 5/02/2021 0.63 -5.263157895 12/02/2021 0.585 -7.142857143 19/02/2021 0.55 -5.982905983 26/02/2021 0.53 -3.636363636 5/03/2021 0.515 -2.830188679 12/03/2021 0.515 0 19/03/2021 0.5 -2.912621359 26/03/2021 0.47 -6 2/04/2021 0.52 10.63829787 9/04/2021 0.49 -5.769230769 16/04/2021 0.45 -8.163265306 23/04/2021 0.44 -2.222222222 30/04/2021 0.39 -11.36363636 7/05/2021 0.33 -15.38461538 14/05/2021 0.34 3.03030303 21/05/2021 0.33 -2.941176471 28/05/2021 0.38 15.15151515 4/06/2021 0.38 0 11/06/2021 0.375 -1.315789474 18/06/2021 0.48 28 25/06/2021 0.46 -4.166666667 2/07/2021 0.51 10.86956522 9/07/2021 0.5 -1.960784314 16/07/2021 0.475 -5 23/07/2021 0.46 -3.157894737 30/07/2021 0.415 -9.782608696 6/08/2021 0.41 -1.204819277 13/08/2021 0.42 2.43902439 20/08/2021 0.42 0 27/08/2021 0.42 0 3/09/2021 0.39 -7.142857143 10/09/2021 0.385 -1.282051282 17/09/2021 0.35 -9.090909091 24/09/2021 0.355 1.428571429 1/10/2021 0.37 4.225352113 8/10/2021 0.485 31.08108108 15/10/2021 0.49 1.030927835 22/10/2021 0.52 6.12244898 29/10/2021 0.57 9.615384615 5/11/2021 0.585 2.631578947 12/11/2021 0.555 -5.128205128 19/11/2021 0.525 -5.405405405 26/11/2021 0.5 -4.761904762 3/12/2021 0.475 -5 10/12/2021 0.45 -5.263157895 17/12/2021 0.455 1.111111111 24/12/2021 0.465 2.197802198 31/12/2021 0.465 0 7/01/2022 0.465 0 14/01/2022 0.475 2.150537634 21/01/2022 0.405 -14.73684211 28/01/2022 0.45 11.11111111 4/02/2022 0.46 2.222222222 11/02/2022 0.445 -3.260869565 18/02/2022 0.42 -5.617977528 25/02/2022 0.425 1.19047619
- Use Time periodand Stock 2 pricesShow the output from Excel ( note the weeks must be changed to time periods 1,2,3...)
- Set up the linear regression equation Stock 2
- Test the significance using p-value with =0.05. Stock 2
- Use Linear regression equation (from b) forecast the stock price for end of May 2022. Stock 2
- Draw Time-series plot for Stock 2
- Do you notice any trend in e)? How would you adjust your forecast above in d)?
| Date | STOCK 2 | |||
| WEEKLY RATE OF RETURN | DEVIDATION OF STANDARD RATE OF RETURN | |||
| 1/01/2021 | 0.585 | |||
| 8/01/2021 | 0.555 | -5.128205128 | ||
| 15/01/2021 | 0.565 | 1.801801802 | ||
| 22/01/2021 | 0.745 | 31.85840708 | ||
| 29/01/2021 | 0.665 | -10.73825503 | ||
| 5/02/2021 | 0.63 | -5.263157895 | ||
| 12/02/2021 | 0.585 | -7.142857143 | ||
| 19/02/2021 | 0.55 | -5.982905983 | ||
| 26/02/2021 | 0.53 | -3.636363636 | ||
| 5/03/2021 | 0.515 | -2.830188679 | ||
| 12/03/2021 | 0.515 | 0 | ||
| 19/03/2021 | 0.5 | -2.912621359 | ||
| 26/03/2021 | 0.47 | -6 | ||
| 2/04/2021 | 0.52 | 10.63829787 | ||
| 9/04/2021 | 0.49 | -5.769230769 | ||
| 16/04/2021 | 0.45 | -8.163265306 | ||
| 23/04/2021 | 0.44 | -2.222222222 | ||
| 30/04/2021 | 0.39 | -11.36363636 | ||
| 7/05/2021 | 0.33 | -15.38461538 | ||
| 14/05/2021 | 0.34 | 3.03030303 | ||
| 21/05/2021 | 0.33 | -2.941176471 | ||
| 28/05/2021 | 0.38 | 15.15151515 | ||
| 4/06/2021 | 0.38 | 0 | ||
| 11/06/2021 | 0.375 | -1.315789474 | ||
| 18/06/2021 | 0.48 | 28 | ||
| 25/06/2021 | 0.46 | -4.166666667 | ||
| 2/07/2021 | 0.51 | 10.86956522 | ||
| 9/07/2021 | 0.5 | -1.960784314 | ||
| 16/07/2021 | 0.475 | -5 | ||
| 23/07/2021 | 0.46 | -3.157894737 | ||
| 30/07/2021 | 0.415 | -9.782608696 | ||
| 6/08/2021 | 0.41 | -1.204819277 | ||
| 13/08/2021 | 0.42 | 2.43902439 | ||
| 20/08/2021 | 0.42 | 0 | ||
| 27/08/2021 | 0.42 | 0 | ||
| 3/09/2021 | 0.39 | -7.142857143 | ||
| 10/09/2021 | 0.385 | -1.282051282 | ||
| 17/09/2021 | 0.35 | -9.090909091 | ||
| 24/09/2021 | 0.355 | 1.428571429 | ||
| 1/10/2021 | 0.37 | 4.225352113 | ||
| 8/10/2021 | 0.485 | 31.08108108 | ||
| 15/10/2021 | 0.49 | 1.030927835 | ||
| 22/10/2021 | 0.52 | 6.12244898 | ||
| 29/10/2021 | 0.57 | 9.615384615 | ||
| 5/11/2021 | 0.585 | 2.631578947 | ||
| 12/11/2021 | 0.555 | -5.128205128 | ||
| 19/11/2021 | 0.525 | -5.405405405 | ||
| 26/11/2021 | 0.5 | -4.761904762 | ||
| 3/12/2021 | 0.475 | -5 | ||
| 10/12/2021 | 0.45 | -5.263157895 | ||
| 17/12/2021 | 0.455 | 1.111111111 | ||
| 24/12/2021 | 0.465 | 2.197802198 | ||
| 31/12/2021 | 0.465 | 0 | ||
| 7/01/2022 | 0.465 | 0 | ||
| 14/01/2022 | 0.475 | 2.150537634 | ||
| 21/01/2022 | 0.405 | -14.73684211 | ||
| 28/01/2022 | 0.45 | 11.11111111 | ||
| 4/02/2022 | 0.46 | 2.222222222 | ||
| 11/02/2022 | 0.445 | -3.260869565 | ||
| 18/02/2022 | 0.42 | -5.617977528 | ||
| 25/02/2022 | 0.425 | 1.19047619 |
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
